How to Erase Your Debt Quicker

Once you take out a loan, you are going to be in debt whether you like it or not. And some people tend to overestimate themselves, thinking that there should be no problems paying off the money in time. However, things do not turn out that way and they end up in a pretty dire situation.

To prevent this from happening, make use of the Westpac repayment calculator and every other tool that is available for this purpose. And as for those who are already in a terrible situation, well, there are some ways to make things easier.

If you have been struggling and would like to get rid of your debt as soon as humanly possible, continue reading and make use of the tips below.

Pay More

It does not matter what kind of debt it is. The best way to ensure that you are free of it is by paying it as soon as possible. Increase the minimum amount that you spend on that and it will not take you years. You will also improve your credit score, making it easier on yourself the next time you are in need of a loan.

Spend Less

Now to make those payments faster, you are going to need to cut down on your expenses first. There is certainly something that is not imperative in your life, and you can get rid of it, at least until you are done with getting out of the debt.

Look at your budget, and if you do not have one, start tracking all your spending. Necessities like food and bills are one thing, but you can make do with cheaper clothes and so on. 

Side Hustle

Saving is all fine and well, but a consumeristic society calls you to look for opportunities for making money rather than saving them.

There are quite a few side hustles to consider. It all comes down to your set of skills, but even if you are not particularly good at something, you can still make money babysitting, dog walking, helping someone on the weekends, and so on.

And as for those who are great on their computer, be sure to check out websites like Fiverr and UpWork and look at all the available freelance jobs on them.

Bare-Bones Budget

Like already mentioned, it is important to keep track of one’s budget and see where you can cut expenses. But there is an alternative to that – creating what is called “bare-bones budget”, and sticking to nothing but bare necessities.

Living in such a situation may be too difficult for some, but if you want to get rid of that debt as soon as humanly possible, this is certainly one of the best options out there. 

Sell Stuff You Do Not Need

Any extra money can be put to good use. If there are some things lying around your house without any purpose, look to sell them on eBay or other platforms. Everything has value. As they say, one man’s trash is another man’s treasure, so you can never be certain if and when something might sell and bring you money. 

Negotiate

You could try negotiating for smaller interest fees, but this is very unlikely to work. Your bills are another big source of expenses, so if you are paying rent and are in good terms with your landlord, perhaps there is some room in there to reduce the monthly fee?

Think about anything else that you can negotiate for, like car insurance, and so on. The more you try, the better your chances are of finding something that will work in your favor.

Ask for a Raise

For most, their salary is the only source of income, and if it has remained the same for a long time, asking for a raise should be a natural thing to do. Of course, it all comes down to your employer and whether they would be willing to help you out.

Holiday bonuses are also something to think about, as the paid holidays themselves. If you have paid vacation days, take those and work in another job. You will have two sources of income at the same time. 

Borrow from Another Person

As a final straw, you could look to borrow money from your friends or family with a promise to give it back. This would erase the previous debt but put you in another. The idea has its pros and cons, so think carefully whether you would be willing to do something like this yourself.

Hopefully, your situation will become after you read this article and make use of the tips mentioned above. After all, staying in debt is extremely uncomfortable and everybody wants to get out of it as soon as they can.